December 19, 2023: The National Highways Authority of India (NHAI) on December 18, 2023, successfully awarded Toll, Operate and Transfer (TOT) projects spanning 273 km at a cost of Rs 9,384 crore to the winning bidders. These projects, falling under the TOT bundles 13 and 14, encountered a delay of approximately three months. The financial bids were unveiled on November 14, 2023, and following the requisite approvals, the Letter of Award was promptly issued to the successful bidders within a day.
The NHAI strategically categorised all the projects into two groups known as Bundle 13 and Bundle 14, initially slated for awarding in September 2023. However, the process faced delays as the NHAI had initially planned to auction two bundles of projects under the TOT model each quarter in the fiscal year 2023-24. The sluggish pace in awarding projects during this period was attributed to the cancellation of two rounds, TOT Bundle 11 and TOT Bundle 12, due to below-par bids in August. Subsequently, new bids for these bundles were invited in October 2023, further contributing to the delay in the awarding of TOT Bundle 13 and TOT Bundle 14.
The TOT Bundle 12 bundle attracted four bids, including a Rs 4,200-crore bid. However, the authority opted to cancel it as the bid amounts fell significantly below the NHAI’s estimates. Similarly, the TOT Bundle 11 received only one bid, leading to its cancellation. Bids for both bundles were reopened in September 2023 and successfully awarded in October. Notably, the two bundles (11 and 12) encompassed the Allahabad Bypass on NH19 in Uttar Pradesh and the Lalitpur-Sagar-Lakhnadon section in the states of Uttar Pradesh and Madhya Pradesh, respectively.
In FY24, the cumulative value of the four TOT bundles awarded reached approximately Rs 15,968 crore, surpassing the targeted monetization amount of Rs 10,000 crore for the current fiscal year. Despite the slowdown in project awards, the government exceeded its anticipated earnings, securing more than the expected Rs 7,500 crore from TOT bundles 13 and 14. In the TOT bundle framework, multiple highways are grouped together and offered to investors for a long-term operation and maintenance contract. The concession period for TOT bundles spans 20 years, during which concessionaires are entrusted with the responsibility of maintaining and operating the designated stretches. In return, the concessionaire is authorized to collect and retain user fees in accordance with prescribed rates under NH Fee Rules.
Specifically, TOT Bundle 14, comprising the Delhi-Meerut Expressway and the Delhi-Hapur section of NH-9 in Delhi and Uttar Pradesh, along with the Binjabahal to Teliebani section of NH-6 in Odisha, has been awarded to Cube Highways and Infrastructure for Rs 7,701 crore. On the other hand, TOT Bundle 13 encompasses the Kota Bypass and Stay Bridge on NH-76 in Rajasthan, as well as the Gwalior-Jhansi section of NH-75 in Madhya Pradesh and Uttar Pradesh, secured by IRB Infrastructure Trust for Rs 1,683 crore.
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